The functions of personal finance and high corporate finance are different, but believe it or not, the two are not completely dissimilar. The businesses which need some guaranteed loans at some time, or at least a line of credit in case they need a short term personal loan are some of the biggest names out there. Even the Ford Motor Company got guaranteed loans at some point. Ford is getting out of debt in double quick time. Freddie Mac and Fannie Mae need more guaranteed loans just to scrape by.
Guaranteed loans for Ford
The government lent the Ford Motor Company $ 23.5 billion before they needed bailout cash and to file bankruptcy. Ford only asked for emergency lines of credit if necessary, and didn’t need a bailout. Ford not asking for bailout funds was maybe the best business decision they’ve made in a while. According to the Wall Street Journal, Ford’s sales shot up 22 percent as GM and Chrysler floundered. Sometimes just knowing you can borrow can give a boost of confidence; some people like knowing they can get a payday advances if they really need it.
Mortgage giants need more guaranteed loans
Freddie Mac and Fannie Mae need more, nevertheless, in guaranteed loans. Freddie, as outlined by ABC, lost $ 6 billion this last quarter already. They are asking for an additional $ 1.8 billion. The twin mortgage giants are struggling, and both have less than two years to get their affairs in order. At that point, Treasury Secretary Geithner won’t write any more checks.
Fortune 500 companies have credit scores too
Ford can be able to get better loans, as they pay back debt and improve the company’s credit score. The biggest corporations benefit from paying off debt, just as a regular person gets a better credit history when they settle their credit card.
Find more information on this subject
online.wsj.com/article/SB20001424052748703589404575417491742322262.html
abcnews.go.com/Business/wireStory?id=11356950
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